Machiavellian, Administrations Decline in Credibility

Saturday August 8, 2009    
Special Edition



Today’s Zinger:


Credibility: 
         When What You Say Is The Same As What You Do
Machiavellian:
         The Outcome Justifies The Means



                               
              



My Opinion:


There is so much going on that I just couldn’t sit by until Wednesday, the next scheduled ZingerKing publishing.  Today’s special article deals with why the administration is creating a reputation of being Machiavellian and in so doing placing their credibility in question.

We all remember President Bush mindlessly standing behind incompetent subordinates.  “Good Job Brownie”, after Michael Brown botched the Katrina evacuation and recovery.  Bush was known for disliking the firing process.  We all remember Donald Rumsfeld prosecuting the war without regard to intelligence from his Generals and his Machiavellian approach to winning the war.  Most leaders have some form of fatal flaw.  Good leaders fill in their flaws with people that can deal with those things that they don’t do well.  Dick Chaney and Michael Chernoff filled in for some of George W. Bush’s flaws.  Donald Rumsfeld failed to understand his flaws and as such never had someone to balance his approach.

President Obama has a problem dealing with his troubled friends.  They seem to end up under the bus.  Jeremiah Wright, Nancy Pelosi, Tim Geithner, Israel, Georgia (the country) have all learned that what this administration says is not necessarily what they do.  If a “friend” makes a statement that is no longer in the interest of the administration, the administration is willing to let them hang on their own rope, and in some cases they provide the rope.

The latest victim is the health care industry, and in particular, the pharmaceutical industry.  Earlier this year the administration held closed door meetings with various health care companies.  Hospitals, insurance companies, industry lobbyists and pharmaceutical companies all came to hear something about the government’s plan for health care.  The something is unknown because the meetings were confidential.  Do you remember the Dick Cheney closed door meetings with energy executives that created a Democratic firestorm with all kinds of accusations of impropriety?  Well, this was the same kind of meeting, without the firestorm.

It is reported that the meeting resulted in negotiated price/cost concessions by industry executives in response to the governments “threats” regarding health care reform.    The administration was determined to let the American people know that the administration is reducing costs of health care, even though it is just a verbal commitment. 

It is reported that the pharmaceutical industry agreed to $80 billion in price concessions over the next 10 years in exchange for the government excluding drug pricing from the Medicare bill.  As a result of this agreement, the pharmaceutical industry became a key partner in the government’s health reform efforts, including paying for supportive advertising.  With an aging population and the fact that older citizens are the primary user of pharmaceuticals, it was probably quite a favorable deal for the drug companies to ensure a growing and profitable future.

Caught between the pharmaceutical industry as a key ally and the protests of Congressional Democrats, the Obama administration on Friday backed away from what drug industry lobbyists had said this week was a firm White House promise to exclude from a proposed health care overhaul the possibility of allowing the government to negotiate lower drug prices under Medicare.  The change of heart is probably due to the fact that the administration now realizes that it cannot implement a revenue neutral health care reform and is now looking for other ways to address the cost problem.

What is most concerning about the administration’s latest bus run-over is the precedent it is setting.  Leadership is principles based.  The principle being demonstrated is the outcome is more important than what happens on the journey of change.  The administration appears to be Machiavellian in their approach to change.  It is not what they say that matters, it is what they actually do, and they are not one in the same.  Whether it is pharmaceuticals, rationing of health care, missiles for Georgia, backing of Israel, or no taxes on the middle class, the administration has a credibility problem.

This credibility problem stems from three sources.  First, the administration is so focused on a specific outcome and they are willing to do what they deem necessary to get there.  Second, the President and the administration lacks the specifics of what it will take to accomplish their vision.  Lastly, the President has a habit of making grand announcement before he knows if it can be done or how it will be done which leads to a lot of back peddling along the way.

In my thirty years of business experience I witnessed these behaviors quite often in young, middle managers.  In their desire to get ahead they would run over many fellow workers and leave “dead bodies” in their wake.  They lacked the knowledge and experience to know what to do and how to do it, but their enthusiasm and youth led them to what they thought was the right outcome.   They thought that getting something done and taking credit for it would propel them to greatness.  How wrong they were.  How wrong the President is.

That’s my opinion,

Zinger


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